Question
From:(redacted)
Sent:Wednesday, January 24, 2007 8:32 AM
To:Verne, B. Michael
Subject:The Facts/
Mike, Company B wantsme to confirm the facts with you including the OTS approval issue I did notraise in our earlier conversation. /thanks(redacted)
Company B is selling 100% ofthe stock of a subsidiary that originates, funds, services and wholesales subprime mortgages. Company B intends to retain a retail mortgage business that iscurrently held by this subsidiary; Company B plans to transfer this retailmortgage business out of the subsidiary being sold and to hold the retailmortgage business in another subsidiary that Company B will retain. Company Bwill continue to generate new mortgage loans at the retail level through thatretained subsidiary. The transfer of the retail business will be subject to OTSapproval. Although Company B expects to receive OTS approval, there is apossibility that OTS approval will not be obtained until a month or two afterthe sale of the subsidiary that originates, funds, services and wholesales subprime mortgages. As a result there is a possibility that Company B will notoriginate new loans during period in which it is awaiting OTS approval.